The income tax department on Tuesday said its new utility — developed to help TDS deductors and TCS collectors identify non-filers or specified persons on whom a higher rate of tax will be levied from July 1 — will help ease compliance burden.
Post July, non-filers of income tax returns for the past two financial years would be subjected to higher rate of tax deducted at source (TDS) and tax collected at source (TCS) if such a deduction was Rs 50,000 or more in each of those two years.
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The provision was introduced in the 2021 Budget.
The collectors would be required to check on the functionality of the PAN of the vendor from whom TDS is to be deducted or TCS to be collected, only at the beginning of the financial year.
